Since April 1, 2023, a new sustain­ability depart­ment at ebm-papst  has been working exclu­sively on this topic and driving it forward. CFO Hans Peter Fuchs and ESG officer Klaus Wittmann talk about exactly what this means and what goals the company is pursuing.

ebm-papst has a long tradi­tion of sustain­ability. So what is changing now?

Hans Peter Fuchs: Indeed, sustain­ability is part of our DNA. Since the company was founded, the focus has been on increasing the effi­ciency of prod­ucts. At the new building in Hollen­bach, we pursued green tech­nolo­gies and CO₂ savings in as early as the mid-2000s. Our appren­tices that serve as Energy Scouts have been looking for energy guzzlers in produc­tion since 2010, which many compa­nies have since been using as a model. It is not surprising that we won the German Sustain­ability Award in 2013 for all our efforts. All of our thoughts and actions are shaped by sustain­ability, but general condi­tions have changed dras­ti­cally for all compa­nies since the Paris Climate Agree­ment and the EU Green Deal: what used to come down to intrinsic moti­va­tion now is a legal oblig­a­tion that we have to – and want to – fulfill.

Sustain­ability is part of our DNA. Since the company was founded, the focus has been on increasing the effi­ciency of prod­ucts.

Hans Peter Fuchs, CFO

Klaus Wittmann: The require­ments now are hard numbers, data, and facts. Every­thing we do is also veri­fi­able. This requires agile struc­tures and an ambi­tious team. With the new ESG (Envi­ron­mental, Social and Gover­nance) depart­ment, we are able to bring the company together glob­ally and work together with all our sites. The under­standing of the term has also changed: so far, sustain­ability has often been equated with climate or envi­ron­mental protec­tion. However, sustain­ability is a holistic concept that includes social aspects and respon­sible corpo­rate manage­ment in addi­tion to the envi­ron­ment. We are now working on this system­at­i­cally.

Never­the­less, let’s talk about climate  goals first: When he took up his  posi­tion, CEO Klaus Geißdörfer said  that ebm-papst has to become climate neutral more quickly. How quickly can that happen?

Wittmann: By 2025, we want to be climate neutral for Scope 1 and 2. The first priority for us is preventing emis­sions. Our focus is on contin­uing to drive energy effi­ciency projects forward. I am thinking of poten­tial savings in building manage­ment, machinery, and our produc­tion processes. The second measure is investing in renew­able ener­gies for our own require­ments. We will be expanding or installing new photo­voltaic systems and renew­able ener­gies wher­ever it makes tech­nical sense. This also relieves the burden on the power grids and can cover a good portion of our required elec­tricity. A third step will be  to switch the elec­tricity we purchase to green elec­tricity as quickly as possible. By purchasing elec­tricity from renew­able ener­gies by the end of 2023, we will manage to prevent about 60 percent of our total CO₂ emis­sions in Germany, China, the USA, and four other coun­tries. Wher­ever it is tech­ni­cally impos­sible to prevent or reduce emis­sions, we use compen­sa­tion certifi­cates and support longterm climate protec­tion projects.

How does this affect your own prod­ucts, which are usually very energy-effi­cient?

Fuchs: Most of our prod­ucts are so effi­cient that they consume rela­tively little energy. We will make them even more effi­cient and digi­talize them even more so that we can save even more. But they will continue to consume energy in and of itself, also because they are often used for decades. For Scope 3, we there­fore also need to look long term at the energy mix used to operate our prod­ucts in the appli­ca­tion. Another impor­tant aspect that we are now taking into account more is the circular economy. That was not the focus in the past. Here too, a strong rethink is required. Because, on the devel­op­ment side, this affects how a product is constructed, so it can be disman­tled again. And then there is the ques­tion of returning them, i.e. how do I bring these raw mate­rials back into the cycle. We will also think about what suit­able busi­ness models look like.

In the future, we need to think more holis­ti­cally and always keep an eye on the issues of the envi­ron­ment, social aspects, and respon­sible corpo­rate manage­ment.

Klaus Wittmann, ESG officer

What do you see as the greatest chal­lenge on this sustain­able path?

Wittmann: For me, it is the cultural change that accom­pa­nies it. In the future, we need to think more holis­ti­cally and always keep an eye on the issues of the envi­ron­ment, social aspects, and respon­sible corpo­rate manage­ment. This applies not only to those in charge, but to all employees. After all, everyone makes a contri­bu­tion to this change and is an ambas­sador to the outside world.

Fuchs: The goal is to get so far that this is an almost subcon­scious process: Is the deci­sion I make today also a sustain­able one – for the climate and the company?

Surely customers will ask them­selves: What does this approach to sustain­ability at ebm-papst mean for me?

Wittmann: Above all, I see the need for more part­ner­ship and greater collab­o­ra­tion and networking throughout the supply chain. Also in regards to the social aspects of sustain­ability, this will have a posi­tive impact on working together. For me, sustain­able busi­ness means “looking to the future together.” When it comes to climate change, a signif­i­cant improve­ment is only possible – espe­cially in Scope 3 – in part­ner­ship with the supply chain and with customers. Collab­o­rating closely with our suppliers to analyze the supply chain is crucial to success. Reducing emis­sions in the product usage phase is only possible if we work more closely with our customers and also gain data on how and where our prod­ucts are used.

Fuchs: Sustain­ability is an invest­ment in the future. It is also impor­tant to under­stand that our customers expect us to be moving forward with sustain­ability! They are subject to the same require­ments and we can help reduce their carbon foot­print. To become climate neutral, we need to look at the entire value chain and get better and better. And this only works if we have our customers on board.